Short-term rental rules · Wilmington, North Carolina
Short-term rentals in Wilmington, explained properly.
Wilmington's original short-term rental rules — a registration lottery, a 2% cap and 400-foot spacing between rentals — were struck down in Schroeder v. City of Wilmington (N.C. Court of Appeals, April 5, 2022), which held that state law bars cities from requiring rental registration and that the cap and spacing rules fell with it. The city stopped requiring registration and dropped the cap and spacing rules in 2022; the remaining zoning standards in Land Development Code Sec. 18-157 still apply. Homestays (up to three guest rooms) must be in the host's principal residence; whole-house rentals need a local operator within 25 miles available 24 hours a day, one off-street parking space per bedroom and $500,000 liability insurance, and parties and events are banned. There is no city STR permit (the Ordinance #0509 permit and 2% tax reported elsewhere belong to Wilmington, Delaware). Guests pay 7% sales tax plus a 6% room occupancy tax, 13% in total.
At a glance
What you need to know before you buy or list
| Question | Answer |
|---|---|
| Registration, lottery, cap and spacing struck down in 2022 | On April 5, 2022 a unanimous N.C. Court of Appeals panel held that Wilmington's short-term rental registration and lottery were barred by state law (G.S. 160D-1207(c)), and that the cap and 400-foot spacing rules were so tied to registration that they fell too. The court reversed the part of the trial court's ruling that voided the whole ordinance, so the city's other STR standards survive (Schroeder v. City of Wilmington, 2022-NCCOA-210) [1] [2] |
| Zoning standards (LDC Sec. 18-157) | The city's current rules are the use standards in Land Development Code Sec. 18-157 (there is no Wilmington, NC Ordinance #0509; that ordinance is Wilmington, Delaware's). Homestay lodging: rooms in the host's principal residence, guest rooms limited to one fewer than the home's bedrooms and no more than three, up to three guest vehicles parked behind the front facade. Whole-house lodging: stays up to 29 days, a local operator available 24 hours a day within 25 miles, one off-street all-weather parking space per bedroom. Both: $500,000 commercial general liability insurance, no parties, events or weddings, and a posted notice with the operator's contact, maximum occupancy and trash days [3] |
| No city STR registration or permit | Wilmington, NC stopped requiring short-term rental registration in April 2022 after Schroeder and refunded past fees; the city's short-term lodging page lists no permit or fee. The $75 annual owner permit reported by a host guide comes from Wilmington, Delaware's Ordinance #0509, not this city [4] [5] |
| Homestay room cap; no per-bedroom guest limit found | Homestays may rent no more than one fewer guest rooms than the home's bedrooms, up to three. The city's page sets no guests-per-bedroom limit; operators must post the maximum number of overnight occupants. The two-guests-per-bedroom rule reported by a host guide is from Wilmington, Delaware [3] |
| Combined tax 13% | Guests pay 7% sales tax (North Carolina's 4.75% plus New Hanover County's local rate) and a 6% room occupancy tax that applies in the City of Wilmington, for 13% in total. Room occupancy tax is reported monthly to New Hanover County Finance by the 20th day after the reporting month [6] [7] |
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Detailed rules
The full picture, section by section
North Carolina statewide framework
| State law limits local rental registration | N.C. Gen. Stat. 160D-1207(c) bars cities and counties from requiring broad rental registration under housing inspection statutes, except for properties with repeat verified violations or high crime or disorder — the basis for the Schroeder ruling. Senate Bill 291 (2025) would set statewide limits on local STR rules; it was referred to the Senate Rules Committee on March 17, 2025 and had no further action as of September 26, 2026 [5] [8] [9]Confirming |
|---|
Changes
Recent and pending changes
We checked the city's Short-Term Lodging page (LDC Sec. 18-157) in a browser, the Schroeder opinion, G.S. 160D-1207, the NCDOR sales tax rate table and New Hanover County's room occupancy tax page. Ordinance #0509 is a Wilmington, Delaware ordinance mislabeled by a host guide, so its permit, occupancy and 2% tax were removed. No new Wilmington, NC STR ordinance was found; the LDC use table (which districts allow each type) still needs a check, and NC SB 291's status couldn't be re-read because ncleg.gov blocks automated browsers. Wrightsville Beach, Carolina Beach and unincorporated New Hanover County are separate jurisdictions.
Sources
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This page is general information compiled from public sources, not legal or tax advice. HOA rules, deed restrictions and zoning for a specific property can be stricter. Confirm with the local permitting office and a qualified professional before buying or listing a property.